Sesa S.p.a. · MIL:SES
Sesa — Mediobanca Mid Cap Conference 2024
29 slides from Sesa's conference presentation, Jan 23, 2024
Slide 1: Mediobanca Mid Cap Conference, Milan
Mediobanca Mid Cap Conference, Milan January 23, 2024
Slide 2: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → First Half Results as of October 31, 2023 and FY 24E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Dir
Slide 3: Business Model and Strategic Achievements
Business Model and Strategic Achievements Leading digital Leading digital partner for the business segment: technology, digital services and business applications partner for Enterprises and About 40,000 customers (o/w 4,000 abroad) with about Eu 3.3 Bn revenues expected in FY as of April 30, 20
Slide 4: Technology innovation and digital services for the Business Segment
Technology innovation and digital services for the Business Segment Italian leading player in technological innovation and digital services with outstanding growth in the last 4Y period 2020-23: CAGR revenues +17.0%, EBITDA +29.6%, EAT Adjusted +33.6% 5,367 employees as of October 31, 2023 and reven
Slide 5: Human capital and skills development programs
Human capital and skills development programs 5,700 CAGR 2012-2023 ∼ 15.7% 3,300 Hiring programs M&As contribution 2,908 5,500 5,367 human resources as of October • 166 hires in Jan-Dec 2018 • 2015-17: 7 M&As, 355 HRs 5,200 2,390 31, 2023 (+21.0% vs October 31, 2022) 4,720 • 245 hires in Jan-Dec 201
Slide 6: Bolt-on industrial M&As to accelerate long-term organic growth
Bolt-on industrial M&As to accelerate long-term organic growth To attract and integrate skills and competencies, enhancing long-term organic growth: • 70 M&As starting from 2015 with additional 2,550 HRs and about Eu 630 Mn annual revenues at acquisition time (Eu 1 Bn in the FY24) • 13 M&As in Jan-D
Slide 7: Long-term commitment of key people and value generation
Long-term commitment of key people and value generation Key people equity commitment and sustainable growth Group Long-term track record achievements REVENUES FY11 Eu 747 Mn EAT Adj FY11 Eu 11.5 Mn Sesa Group equity partners’ focus on long term Group REVENUES FY23 Eu 2,908 Mn EAT Adj FY23 Eu 100.1 M
Slide 8: Market Trends confirm digitalization path
Market Trends confirm digitalization path ICT Worldwide Market, source Gartner November 2023 Worldwide ICT market Bn Dollars 2018 2019 2020 2021 2022 2023E 2024E Data Centre Systems 210 203 208 190 227 238 260 Enterprise Software 419 457 507 732 811 916 1,042 Devices 712 682 688 808 766 689 722 Af
Slide 9: Sustainability programs improvement
Sustainability programs improvement Sustainable growth in corporate bylaws as Carbon Neutrality program in line with EU Agenda strategic target of Sesa BoD (since Jan 2021) Environmental performance in FY 2023: Sesa Group certifications and ESG Rating: SUSTAINABILITY emissions per capita 1.2
Slide 10: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → First Half Results as of October 31, 2023 and FY 24E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Dir
Slide 11: Steady growth in H1 2024
Steady growth in H1 2024 Revenues Ebitda Group EAT Adj1 Eu 113.3 Mn Eu 50.1 Mn NFP2 (+21.3% Y/Y) (+9.1% Y/Y) Eu 153.4 Mn (net cash) H1 2024 Eu 1,501.6 Mn vs (May - Oct 23) (+14.5% Y/Y) Eu 189.5 Mn (net cash) Ebitda Margin 7.5% EAT Adj margin 3.3% (vs 7.1% H1 23) (vs 3.5% H1 23) as of October 31, 202
Slide 12: Revenues, EBITDA and EAT improvement by segment (H1 2019-24)
Revenues, EBITDA and EAT improvement by segment (H1 2019-24) H1 24 Group Revenues and Other Income grew by 14.5% to Eu 1,501.6 Mn, thanks to the great contribution of all Sectors: VAD up 11.9% Y/Y, SSI +21.6% Y/Y, Business Services +38.6% Y/Y, driven by the development of applications and digital
Slide 13: Revenues, EBITDA and EAT improvement by segment (FY 2018-2023)
Revenues, EBITDA and EAT improvement by segment (FY 2018-2023) FY 23 Group Consolidated Revenues and Other Income grew by 21.7% to Eu 2,907.6 Mn with a significant development of all Sectors: VAD +20.4% Y/Y, SSI +22.8% Y/Y, Business Services +43.2% Y/Y FY 23 Group Ebitda increased by +24.9% Y/Y,
Slide 14: H1 2024 Financial Results and FY 2024 Outlook
H1 2024 Financial Results and FY 2024 Outlook 12Year 4Year FY2022 FY2023 Change H1 2023 H1 2024 Change Guidance Guidance Eu million CAGR CAGR 12M 12M Y/Y 6M 6M Y/Y FY 20243 FY24/ FY23 2012-23 2020-23 Revenues 2,389.8 2,907.6 +21.7% 1,311.7 1,501.6 +14.5% +12.0% +17.0% 3.2-3.3 Bn +10%-15% Ebitda 167.
Slide 15: Cash Flow generation and NWC management FY 2014-24 by Quarter
Cash Flow generation and NWC management FY 2014-24 by Quarter NWC and NWC/Revenues FY 2014 – FY 2024 Quarterly1 Group NFP2 FY 2014 – FY 2024 Quarterly • Growing and progressive Efficiency improvement in NWC management in the 2014-2023 period • NFP continuos Improvement in the 2014-2023 period • Slig
Slide 16: Group sustainable long-term growth and FY 2024 guidance
Group sustainable long-term growth and FY 2024 guidance Sales and other Revenues (Eu Mn) EBITDA (Eu Mn) EBIT Adjusted2 (Eu Mn) 3,200-3,3001 185-1931 240-2501 2,908 2,390 209.4 160.9 CAGR 2012-23 +12.0% +10- 15% CAGR 2012-23 +16.2% CAGR 2012-23 +16.6% CAGR 2020-23 +17.0% 2,037 +22% Y/Y CAGR 2020-23 +
Slide 17: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → First Half Results as of October 31, 2023 and FY 24E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Dir
Slide 18: SSI: Digital Partner for European Enterprises
SSI: Digital Partner for European Enterprises Revenues breakdown1 800 Mn revenues, Ebitda margin ∼ 12% and 3,800 employees1 Data Customer & Business Science Customer base of around 10,000 Enterprises and Mid Corporates of which over 2,000 abroad. Coverage of all Experience 2.5% Digital Workspace Ita
Slide 19: Business Services: Digital Transformation for Financial Services
Business Services: Digital Transformation for Financial Services 120 Mn revenues, Ebitda margin ∼ 13% and 800 employees1 Revenues breakdown1 Group Sector started on February 2020 and focused on digital transformation, business applications and Base digital platforms for Financial Services Industry.
Slide 20: VAD: Digital partner of ICT ecosystems
VAD: Digital partner of ICT ecosystems VAD Italian market share2 Major Vendor Concentration 2.4 Bn revenues, Ebitda margin ∼ 5% and ∼ 750 employees1 (% of Sales)3 Others; 23.0% Computer 100% Complete offering of value-added technology, consulting, marketing and training Gross; 48.0% Ingram services
Slide 21: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → First Half Results as of October 31, 2023 and FY 24E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Dir
Slide 22: Group H1 Results as of October 31, 2023 by segment
Group H1 Results as of October 31, 2023 by segment 6-Months as of October 31, 2023 (H1) Y/Y Highlights Segment Information 6M period as of October 31, 2023 (H1) 6M period as of October 31, 2022 (H1) H1 2024 results (May – October 2023) In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Group
Slide 23: Income Statement as of October 31, 2023 as reported
Income Statement as of October 31, 2023 as reported Change H1 2024 Consolidated reclassified Income Statement (Euro/thousand) H1 october 31, 2022 % H1 october 31, 2023 % vs H1 2023 Revenues 1,298,771 1,482,853 14.2% Other income 12,965 18,763 44.7% Total Revenues and Other Income 1,311,736 100.0% 1,
Slide 24: Income Statement as of April 30, 2023 as reported
Income Statement as of April 30, 2023 as reported Change FY Consolidated reclassified Income Statement (Euro/thousand) April 30, 2021 % April 30, 2022 % April 30, 2023 % 2023/22 Revenues 2,022,454 2,362,603 2,867,700 21.4% Other income 14,769 27,220 39,939 46.7% Total Revenues and Other Income 2,037
Slide 25: Balance Sheet as of October 31, 2023 as reported
Balance Sheet as of October 31, 2023 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) H1 October 31, 2021 H1 October 31, 2022 H1 October 31, 2023 Change 2023/22 Intangible assets 179,019 282,066 435,374 153,308 Property, plant and equipment 100,348 119,041 135,225 16,184 Investmen
Slide 26: Balance Sheet as of April 30, 2023 as reported
Balance Sheet as of April 30, 2023 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) April 30, 2021 April 30, 2022 April 30, 2023 Change 2023/22 Intangible assets 142,826 228,280 368,488 140,208 Property, plant and equipment 99,942 111,943 125,901 13,958 Investments valued at equit
Slide 27: Sesa Group M&As starting from 2015
Sesa Group M&As starting from 2015 SSI Sector Business Services Sector VAD Sector Company Revenues Company Revenues Company Revenues • APRA Eu 16 Mn • ACCADIS Eu 18 Mn • VAR BMS Eu 14 Mn • ICOS Eu 50 Mn • VAR PRIME Eu 5 Mn • PICO Eu 20 Mn • SAILING Eu 2.5 Mn 2015-20191 • YARIX Eu 4 Mn New Group Sect
Slide 28: Thank you for your kind attention
THANK YOU FOR YOUR KIND ATTENTION For additional information Stakeholder Relations Department Elisa Gironi, Corporate Governance, Integration and M&A Director e.gironi@sesa.it Jacopo Laschetti, Sustainability, Stakeholders and IR Manager j.laschetti@sesa.it Francesco Billi, Group CFO f.billi@sesa.it
Slide 29: www.sesa.it
www.sesa.it This document has been prepared by Sesa SpA (“SeSa” or the “Company”) solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by the Co